Asian lender under scrutiny after capital boost

I / Nusa Dua (indonesia) May 5, 2009, 15:31 IST

Shareholders joined independent activists today in demanding greater openness and transparency from the Asian Development Bank as it embarks on a huge expansion of its lending activities.Bank President Haruhiko Kuroda hailed an agreement last week to triple the 42-year-old lender's capital base to $165 billion as a "resounding vote of confidence from our shareholders."   

But almost as resounding were the warnings from shareholders and activists alike at the bank's annual general meeting this week that the extra funding comes with greater scrutiny of the bank's activities."The general capital increase brings with it a higher level of responsibility for the efficient and effective use of these additional funds," Austria's representative, Marcus Heinz, told the bank's board of governors.    

"The ADB can achieve its goal of poverty reduction through inclusive and sustainable growth only if funds are managed effectively and responsibly." It was a recurring theme as the 67 governors met at the gated beachside hotel complex of Nusa Dua in Bali to discuss the ADB's plans to tackle the global financial crisis.